21/09/2021

The crypto markets and U.S. equity markets sold on Sept. 20 amid fears that the collapse of Chinese real estate giant Evergrande could not only harm China, but also have a greater impact on other markets.
When the mood is bearish, traders abandon positions they consider risky in favor of safe-haven trades. This could be one of the reasons behind the sharp decline in Bitcoin (BTC) and most of the major altcoins on September 20th.
Daily performance of the cryptocurrency market. Source: Coin360
Bybt data shows that bitcoin in Binance wallets has increased by 29,717 bitcoin in the past 30 days. History suggests that an increase in the Bitcoin balance on Binance resulted in a decrease in the price of Bitcoin.
The Bitcoin balance on Binance rose from 99,700 BTC on April 20th to 347,590 BTC on June 26th. During this period, Bitcoin’s price plummeted from around $ 57,000 to around $ 30,000.
Now the question is, could the sell-off deepen or will lower levels attract aggressive buying from traders? Let’s analyze the top 10 cryptocurrency charts to find out.
Table of Contents
BTC / USDT
Bitcoin sales tightened after bears dragged the price below the moving averages. The price action of the past few days has created a head and shoulders pattern that completes on a breakdown and closes below the neckline.
BTC / USDT daily chart. Source: TradingView
The moving averages are on the verge of a bearish crossover and the Relative Strength Index (RSI) has fallen below 41, suggesting the bears are in control. If the price holds below the neckline, the BTC / USDT pair could fall to $ 37,332.70 and then to the pattern target of $ 32,423.05.
Contrary to this assumption, the bulls will try again to push the price towards $ 50,000 when the price bounces off the neck. However, the bears are likely to aggressively defend the 20-day exponential moving average (EMA) ($ 47,014).
If the price deviates from this resistance, it suggests that sentiment has turned negative and traders are selling on rallies. The first sign of strength will be a breakout and a close above $ 48,843.20.
ETH / USDT
Ether (ETH) bounced off the support at $ 3,377.89 on September 18, but the bulls were unable to keep the price above the 20-day EMA ($ 3,402). This indicates that traders have closed positions at higher levels.
ETH / USDT daily chart. Source: TradingView
If the price breaks and closes below USD 3,000, the ETH / USDT pair will complete a bearish head and shoulders pattern. The target goal of this setup is $ 1,972.12.
The 20-day EMA has started falling and the RSI is below 42, suggesting that the path of least resistance is on the downside.
On the contrary, if the bulls aggressively defend the $ 3,000 level, the pair could move back towards the overhead resistance at $ 3,377.89. The bears are likely to defend this level, but if the bulls overcome this resistance it will signal that the correction may be over.
ADA / USDT
The bulls defended the 50-day simple moving average (SMA) ($ 2.31) on September 18 but failed to build on the rebound. The ongoing sale pulled Cardano (ADA) below the 50-day SMA on September 19.
ADA / USDT daily chart. Source: TradingView
Sell escalated on September 20, with the ADA / USDT pair plummeting to critical support at $ 1.94. The strong rebound from this level suggests that bulls are piling up on dips.
If buyers continue the rally, the pair could gradually move towards the overhead resistance at $ 2.47. The bears are likely to sell on relief rallies to the 20-day EMA ($ 2.45). If the price deviates from this resistance, the pair could fall back to $ 1.94.
A break and close above the 20-day EMA is the first sign that sellers may lose control.
BNB / USDT
Binance Coin (BNB) broke below the 50-day SMA ($ 422) on September 17, and subsequent attempts by the bulls to regain levels failed. This suggests that bears are selling on every small rally.
BNB / USDT daily chart. Source: TradingView
The sell gained momentum on September 20, with the BNB / USDT pair falling near the critical support at $ 340. This is an important level for the bulls to defend as a break below it could open the doors for a decline to $ 300 and then $ 250.
The moving averages have made a bearish crossover and the RSI is in negative territory, suggesting that the bears have the upper hand.
If the price rebounds from $ 340, the pair could hit the 20-day EMA. This level is likely to act as a strong drag. The bulls need to push and hold the price above $ 422.80 to indicate the correction may be over.
XRP / USDT
Ripple (XRP) has been trading near the breakout level of $ 1.07 for the past few days, but the bulls’ failure to push the price above the 20-day EMA ($ 1.09) indicated that bears were at Rallies sold.
XRP / USDT daily chart. Source: TradingView
Selling intensified after the bears dragged the price below the 50-day SMA ($ 1.08) on September 19 and closed. The moving averages are on the verge of a bearish crossover and the RSI has fallen into negative territory, suggesting that bears are in command.
If the price stays below $ 0.95, the XRP / USDT pair could drop to $ 0.75. Any recovery rally from current levels should face strong resistance at the 20-day EMA. A breakout and close above USD 1.13 signals that the bulls are trying to make a comeback.
SOL / USDT
The long tail of the September 17th candle shows that the bulls aggressively bought the decline below the 20-day EMA ($ 148). This was followed by a strong rally on September 18, but the bulls failed to hold Solana (SOL) above the initial resistance at $ 170.
SOL / USDT daily chart. Source: TradingView
This could have resulted in profit booking by bulls and short selling by aggressive bears. The 20-day EMA has flattened and the RSI is near the middle, indicating that the bulls are losing their hold.
If the price stays below the 20-day EMA, the SOL / USDT pair could fall to the 61.8% Fibonacci retracement level at $ 123.42. A break and close below this support suggest that the uptrend may be over.
The bulls need to push and hold the price above USD 171.47 to signal the end of the correction phase.
DOT / USDT
Polkadots (DOT) rebound from the 20-day EMA (USD 32.12) on September 18th was followed by an inside-day candlestick pattern on September 19th. This showed the indecision between the bulls and the bears.
DOT / USDT daily chart. Source: TradingView
That uncertainty cleared on September 20th with a break below the 20-day EMA. The sale gained momentum falling on critical support in the 50-day SMA ($ 27.29). This is an important support for the bulls as they successfully defended them on September 7th.
If the DOT / USDT pair recovers from current levels, the bears will likely sell on rallies to the 20-day EMA. If the price moves down from this level, it suggests that sentiment has turned negative and this increases the prospect of a break below the 50-day SMA. This negative view will be invalidated if the price goes up and goes above $ 34.
Related: Ethereum forms a double top? The ETH price drops 12.5% due to fears of an Evergrande contagion
DOGE / USDT
Close-range Dogecoins (DOGE) trading broke down on Sept. 20 as bears dragged the price to the strong support at $ 0.21.
DOGE / USDT daily chart. Source: TradingView
The falling 20-day EMA ($ 0.25) and the RSI near the oversold area show the bears are in control. If they manage to get and hold the price below the $ 0.21 support, the DOGE / USDT pair could slide to $ 0.15.
If the price recovers from current levels, the bulls will try again to push the pair above the 20-day EMA. If they succeed, the pair could enter the downtrend line. Alternatively, if the price deviates from the 20-day EMA, it increases the prospect of a break below $ 0.21.
UNI / USDT
The bulls attempted a rebound on September 18 but failed to push Uniswap (UNI) above the 20-day EMA ($ 25.09). This showed that bears are aggressively defending the 20-day EMA.
UNI / USDT daily chart. Source: TradingView
The UNI / USDT pair continued its bearish move and the bears pulled the price below the critical support at USD 21 today. If the price stays below this support, the pair could panic selling and drop to the nearest support at $ 18.
The falling 20-day EMA and the RSI in negative territory indicate an advantage for bears. This negative view will be invalidated if the price rises from the current level and rises above the downtrend line. Such a movement indicates strong accumulation at lower levels.
AVAX / USDT
The long wick on the candlestick on September 18-19 showed that traders were posting higher profits. Sales intensified today and Avalanche (AVAX) fell to the 20-day EMA ($ 55.16).
AVAX / USDT daily chart. Source: TradingView
The strong rebound from the 20-day EMA suggests sentiment will remain positive and traders will accumulate on dips. If the price holds above $ 60.04, the bulls will try again to push the AVAX / USDT pair towards the all-time high of $ 76.27.
On the contrary, if price declines from current levels and falls below the 20-day EMA, bearish momentum could increase as traders may rush to exit. This could bring the price down to $ 48 and then to the 50-day SMA ($ 38.56) where buyers can step in to stop the decline.
The views and opinions expressed are those of the author only and do not necessarily reflect the views of Cointelegraph. Every investment and trading movement involves risks. You should do your own research when making a decision.
Market data is provided by HitBTC Exchange.
Relevant news

Cardano price dips after smart contract launch, Walmart working with Litecoin is fake news, Coinbase raises $2B from junk-bond sale: Hodler’s Digest, Sept. 12-18
Hodler’s Digest kommt jeden Samstag und hilft Ihnen dabei, jede einzelne wichtige Nachricht zu verfolgen,…

BTC, ETH, ADA, BNB, XRP, SOL, DOT, DOGE, UNI, LUNA
Bitcoin’s (BTC) rebound is facing strong resistance near $ 48,500, suggesting that bears are active…

China’s version of McJob meme, eCNY airdrops, Canaan’s record revenue – Cointelegraph Magazine
This weekly roundup of news from mainland China, Taiwan, and Hong Kong attempts to curate…

BTC, ETH, ADA, BNB, XRP, SOL, DOT, DOGE, UNI, LUNA
Bitcoin (BTC) is leading the recovery in the crypto sector, and the cryptocurrency briefly rebounded…

Price analysis 9/13: BTC, ETH, ADA, BNB, XRP, SOL, DOT, DOGE, LUNA, UNI
Bitcoin’s (BTC) failure to rebound strongly in recent days has resulted in profit posting on…

Price analysis 9/10: BTC, ETH, ADA, BNB, XRP, SOL, DOGE, DOT, LUNA, UNI
Bitcoin’s recent slump doesn’t seem to have rocked investors, with data showing that foreign exchange…
Be the first to comment